The Interconnective Web of Global Debt - Visual Chart
Guest Post: The Interconnective Web of Global Debt
http://www.zerohedge.com/sites/defau.../picture-5.jpg Submitted by Tyler Durden on 12/21/2012 11:00 -0500
Via John Aziz of Azizonomics blog,
It’s very big:
http://www.zerohedge.com/sites/defau...121220_web.png
Andrew Haldane:
Interconnected networks exhibit a knife-edge, or tipping point, property. Within a certain range, connections serve as a shock-absorber. The system acts as a mutual insurance device with disturbances dispersed and dissipated. But beyond a certain range, the system can tip the wrong side of the knife-edge. Interconnections serve as shock-ampli ers, not dampeners, as losses cascade. The system acts not as a mutual insurance device but as a mutual incendiary device.
A mutual incendiary device sounds about right.
Guest Post: The Interconnective Web of Global Debt | ZeroHedge